LANSING – The Michigan Public Service Commission on Tuesday opened an investigation into Consumers Energy Company’s estimated billing practices after hearing complaints from customers about estimated bills.

“Problems have persisted for several years despite repeated meetings between the MPSC staff and the utility to reduce the number of estimated bills,” PSC Chair Sally Talberg said in a statement. “Therefore, the Commission today has commenced an investigation that requires the utility to provide detailed explanations about its estimated billing practices.”

The order (Case U-18002) directs the utility to file a report by February 18 and directed PSC staff to supply its analysis and recommendations by May 18.

Specifically, the company is to report on eight areas, the commission said, including:

  • Explanations of the utility’s performance history regarding its meter reading factor;
  • The impact of certain software on billing issues related to estimated meter reads;
  • Meter reading staffing levels;
  • Communications with customers regarding estimated reads;
  • How many customers the utility under- or over-estimated during the summer tiered rate period;
  • How many variable rate alternative gas supplier customers for whom it estimated meter reads during the heating season;
  • What the utility is doing with any customer service write offs related to estimated billing; and
  • The utility’s plans going forward to address the practice of estimated billing.

Consumers spokesperson Dan Bishop said the company will be working with and cooperating fully with the PSC on the issue.

“We are aware that some homes and businesses have been receiving estimated bills for a number of months, (and) we are actively visiting each of these accounts. We are working to read meters and provide customers updated bills based on actual energy use,” Bishop said. “Some of these customers may receive bill credits; others may receive higher bills – most will see very little change in their bill. We are proactively reaching out to any customer who experiences a significant change in his or her bill to offer payment arrangements equivalent to the same number of months the meter was estimated.”

Customers with concerns about estimated billing or who are interested in commenting on this case may contact the Michigan Agency for Energy’s compliance and investigation section toll-free at 800-292-9555, the PSC said in its statement.

MSU SERVICE: The PSC approved an agreement between Consumers Energy Company and the Lansing Board of Water and Light regarding the provision of electric service to Michigan State University allowing Consumers to construct facilities and provide electric service to the university and both utilities to divide the net margin from electric service to the Facility for Rare Isotope Beams (FRIB) project equally between themselves over a 20-year period following commencement of service to the FRIB project (Case U-17925).

DTE ELECTRIC COMPANY: The PSC on Tuesday also approved a settlement agreement authorizing DTE Electric Company to reconcile its 2014 supply costs, costing customers a one-time charge of 24 cents in February (Case U-17319-R).

MICHIGAN GAS UTILITIES CORPORATION: The commission also approved a settlement (Case U-17548) authorizing Michigan Gas Utilities Corporation to true up amounts related to the 2013 and 2012 reconciliation of its uncollectible expense tracking mechanism to recover a total of $176,967 by implementing a one-time surcharge of $1.04 on all active accounts, except special contracts, in February.

PETROLEUM PIPELINE: And the PSC approved a settlement agreement authorizing Wolverine Pipe Line Company to construct, operate and maintain the 16-inch pipeline system for the transportation of petroleum products in Washtenaw and Wayne counties. It will link refineries in the Chicago area that produce refined products used by consumers and businesses in Michigan and surrounding regions (Case U-17878).

This story was published by Gongwer News Service. To subscribe, click on www.gongwer.com